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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 30, 2009
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REUNION INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 01-15739 06-1439715
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(State of Incorporation) (Commission File No.) (IRS Employer ID No.)
11 STANWIX STREET, SUITE 1400
PITTSBURGH, PENNSYLVANIA 15222
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(Address of principal executive offices, including zip code)
(412) 281-2111
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(Registrant's telephone number, including area code)
NOT APPLICABLE
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 8.01 - Other Events
As previously reported, on November 26, 2007 Reunion Industries, Inc.
("Reunion") filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code in the United States Bankruptcy Court for the District of
Connecticut, Bridgeport Division (the "Bankruptcy Court"). Reunion continues
to operate as "debtor-in-possession" in that proceeding under the jurisdiction
of the Bankruptcy Court and in accordance with the applicable provisions of
the Bankruptcy Code. Attached to and made a part of this Report is Reunion's
Monthly Operating Report that was filed on January 22, 2009 with the
Bankruptcy Court and the United States Trustee pursuant to Rule 2015 of the
Federal Rules of Bankruptcy Procedure.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned, hereunto duly authorized.
Date: January 30, 2009 REUNION INDUSTRIES, INC.
---------------- (Registrant)
By: /s/ John M. Froehlich
---------------------
John M. Froehlich
Executive Vice President
of Finance and Chief
Financial Officer
- 2 -
UNITED STATES BANKRUPTCY COURT
BRIDGEPORT DIVISION - DISTRICT OF CONNECTICUT
MONTHLY OPERATING REPORT
In re REUNION INDUSTRIES, INC. Case No. 07-50727(AHWS)
------------------------ --------------
Reporting Period: DECEMBER 2008
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Federal Tax I.D. # 06-1439715
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CORPORATE MONTHLY OPERATING REPORT
REQUIRED DOCUMENTS Form No. Document Explanation
Attached Attached
----------------------------- -------------- -------- ------------
Schedule of Cash Receipts
and Disbursements MOR-1 YES N/A
Bank Reconciliations MOR-1(CON'T) YES N/A
Statement of Operations MOR-2 YES N/A
Balance Sheet MOR-3 YES N/A
Status of Post-petition Taxes MOR-4 YES N/A
Summary of Unpaid Post-petition
Debts MOR-4 YES N/A
Accounts Receivable MOR-5 YES N/A
Taxes Reconciliation & Aging MOR-5 YES N/A
Payments -Insiders/Professionals MOR-6 YES N/A
Post Petition Status of Secured
Notes, Leases Payable MOR-6 YES N/A
Debtor Questionnaire MOR-7 YES N/A
I declare under penalty of perjury (28 U.S.C. Section 1746) that this
report and the attached documents are true and correct to the best of
my knowledge and belief.
Authorized Individual \s\ JOHN M. FROEHLICH, CFO Date JAN. 24, 2009
------------------------- -------------
Authorized individual must be an officer, director or shareholder if
debtor is a corporation.
- A-1 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 1/4
CASH RECEIPTS AND DISBURSEMENTS
DECEMBER 2008
-------------
Cash - beginning of period excluding $ 6,542,557
Plus: Collections on receivables 1,504,232
Plus: Miscellaneous/Titan receipts 112,155
Less: Disbursements
Net payroll 348,272
Payroll taxes 148,325
Titan disbursements 37,268
Other operating 1,342,554
Income Tax payments 150,000
Reorganization:
Professional fees 168,458
U.S. Trustee fees -
----------
Total 2,194,877
Increase(Decrease)in outstanding checks (54,638)
----------
Cash - end of period $ 5,909,429
==========
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/4
BANK RECONCILIATION
AS OF DECEMBER 31, 2008
-----------------------
BANK PNC BANK PNC BANK PNC BANK PNC BANK
TYPE OPERATING PAYROLL HEALTHCARE PENSION
ACCOUNT NUMBER 2161326 2184149 2880718 10382890
Balance per books $ 35,756 $ 0 $ (4,069) $ 0
======== ======= ======== ========
BANK BALANCE $ 60,772 $ 0 $ 3,776 $ 710
Deposits in transit
Outstanding checks (25,016) - (7,845) (710)
Other - explain below
-------- ------- -------- --------
Adj. Bank Balance $ 35,756 $ 0 $ (4,069) $ 0
======== ======== ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
EXPLANATION OF OTHER:
- A-3 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 3/4
BANK RECONCILIATION
AS OF DECEMBER 31, 2008
-----------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE PENSION COLLATERAL CARVE-OUT
ACCOUNT NUMBER 1011567058 1019820572 1019820847
Balance per books $ 0 $3,895,447 $1,511,722
======== ========== =========
BANK BALANCE $ 6,205 $3,895,447 $1,511,722
Deposits in transit 0
Outstanding checks (6,205)
Other - explain below -------- ---------- ---------
Adj. Bank Balance $ 0 $3,895,447 $1,511,722
======== ========== =========
("Adj. Bank Balance" must equal "Balance per books".)
- A-4 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 4/4
BANK RECONCILIATION
AS OF DECEMBER 31, 2008
-----------------------
BANK FIFTH THIRD FIFTH THIRD Chase Chase
TYPE OPERATING PAYROLL Operating Royalty
ACCOUNT NUMBER 7512940417 1065629 1690008469 1820765236
Balance per books $ 296,077 $ 0 $ 87,605 $ 127,601
========= ======== ======= ========
BANK BALANCE $ 470,925 $ 0 $ 98,516 $ 130,329
Deposits in transit
Outstanding checks (174,848) (10,911) (2,728)
Other - explain below
--------- -------- ------- --------
Adj. Bank Balance $ 296,077 $ 0 $ 87,605 $ 127,601
========= ======== ======= ========
("Adj. Bank Balance" must equal "Balance per books".)
- A-5 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 2
INCOME STATEMENT
FOR THE PERIODS INDICATED
-------------------------
($ amounts in thousands)
Post
Month of Petition to
Dec-08 31-Dec-08
-------- ---------
Net Sales $ 990 $ 32,956
Cost of Sales:
Standard Cost 739 24,177
Variances & Other 259 2,867
------ -------
Gross Profit (8) 5,912
Operating Expenses:
Marketing 47 1,050
General & Admin 528 4,295
------ -------
Operating Profit (583) 567
Other Income(Expense) (190) 39,849
Equity in China JV 66 944
Reorganization exp:
Professional fees - (339)
U.S. Trustee fees - (71)
Other
Adequate Protection Paym't Exp. - (450)
Interest Expense - excluding Adequate
Protection Payments (522) (3,781)
------ -------
Profit before tax (1,229) 36,719
Income Tax 0 0
------ -------
Net Income $ (1,229) $ 36,719
====== =======
NOTE: Other income(expense) above primarily reflects the gain on
the sale of the Company's CP Industries division in
April of 2008.
- A-6 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 3
COMPARITIVE BALANCE SHEET
AS OF THE PERIODS SHOWN
-----------------------
($ amounts in thousands)
26-Nov-07 30-Nov-08 31-Dec-08
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 6,542 $ 5,909
Net Receivables 7,166 2,349 1,805
Net Inventory 12,369 1,947 2,002
Other Current Assets 3,029 2,296 3,753
------- ------- -------
Current 23,318 13,134 13,469
Net Property 6,300 3,484 3,472
Goodwill 10,994 1,491 1,491
CSV policies 2,200 2,195 2,003
Interest in China JV 3,009 3,887 2,462
------- ------- -------
Total $ 45,821 $ 24,191 $ 22,897
======= ======= =======
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 2,732 2,768
Accrued Income Taxes 0 11 11
Accrued Interest 544 660 665
Customer Deposits 4,424 0 0
Accrued Other 4,272 4,735 4,826
------- ------- -------
Current 12,545 8,138 8,270
Secured Debt and interest 53,418 500 500
Other Liabilities 3,101 624 427
------- ------- -------
Total Liabilities 69,064 9,262 9,197
Total Equity (23,243) 14,929 13,700
------- ------- -------
Total $ 45,821 $ 24,191 $ 22,897
======= ======= =======
- A-7 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 1/3
SUMMARY OF UNPAID POST PETITION TAXES AND DEBTS
AS OF DECEMBER 31, 2008
-----------------------
($ Amounts in 000's)
TAXES:
------
Beg End
Liability Accrued Paid Liability
--------- -------- ----- ---------
NON-PAYROLL TAXES:
Sales $ 0 $ 0
Excise $ 0 $ 0
Real Property $ 0 $ 0
Personal Property $ 0 $ 0
PAYROLL TAXES - See attached pages 2 to 3
-----------------------------------------
Amount due for payrolls in the last half of
December 2008 - paid in January. $ 53
DEBTS:
------
Days Past Due
---------------------------
Current 0-30 31-60 61-90 Over 91 Total
------ ---- ---- ---- ------ ------
Accounts Payable $ 359 $ 184 $ 40 $ 0 $ 2,185 $ 2,768
Wages Payable 133 133
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protection Paymts 0 0
Professional Fees 71 0 5 0 0 76
Amounts due Insiders 4 4 4 4 114 130
---- --- --- --- ----- -----
Total $ 568 $ 188 $ 49 $ 4 $ 2,299 $ 3,107
===== === === === ===== =====
Explanations:
Wages represent hourly wages earned in the last half of December that were
paid in January.
Professional fees are due Reid and Riege and are awaiting Bankruptcy Court
approval.
Amounts due insiders represent post petition interest on note and guaranty fees.
- A-8 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 2/3
FIT/FICA TAX PAYMENTS and FUTA 940 TAX PAYMENTS
DECEMBER 2008
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DATE
PAID REF HANNA HQ TOTAL
---- --- ------ ------ -------
DECEMBER
01 941 36,092 10,995 47,087
02 0
03 0
04 0
05 0
08 0
09 941 12,965 12,965
10 0
11 0
12 0
15 0
16 941 14,655 14,655
17 941 18,426 11,060 29,486
18 0
19 0
22 0
23 941 13,855 13,855
24 0
26 941 15,345 15,345
29 0
30 0
31 0
------- ------ -------
TOTAL 111,338 22,055 133,393
======= ====== =======
- A-9 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 3/3
PA., ILLINOIS, INDIANA AND WISCONSIN WITHHOLDING TAX PAYMENTS
DECEMBER 2008
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DATE
PAID STATE HANNA HQ TOTAL
---- -------- -------- -------- ----------
DECEMBER
01 PA 1,168 1,168
02 IL 3,383 3,383
03 0
04 0
05 0
08 0
09 0
10 IL 1,332 1,332
11 0
12 0
15 WI 836 836
16 0
17 IL 1,473 1,473
18 PA 1,250 1,250
19 IL,IN 1,670 65 1,735
22 0
23 0
24 IL 1,401 1,401
26 0
29 IL 1,506 1,506
30 0
31 WI 848 848
------ ----- ------
TOTAL 12,449 2,483 14,932
====== ===== =====
- A-10 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF DECEMBER 31, 2008
------------------------
($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 2,461
Plus: Invoiced during the month 1,011
Less: Amounts collected (1,504)
Less: Credits/Adjustments (15)
------
Trade Receivables - end of month $ 1,953
======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 974
31-60 785
61-90 107
91+ 87
------
Total trade receivables 1,953
Non-trade receivables 0
Less: Reserve for bad debts (148)
------
Net Receivables - per balance sheet $ 1,805
======
TAXES PAYABLE
-------------
Taxes from December payrolls - paid in Jan. $ 53
===
- A-11 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 6
PAYMENTS TO INSIDERS and PROFESSIONALS and
STATUS OF SECURED NOTES, LEASES AND ADEQUATE PROTECTION PAYMENTS
DECEMBER 2008
-------------
Of the total disbursements shown on MOR-1, list the amount paid to
insiders and to professionals. For payments to insiders, identify
the type of compensation paid.
PAID THIS TOTAL
TYPE OF PERIOD POST
NAME PAYM'T AMOUNT PETITION
------------------------ ----------- --------- --------
INSIDERS:
---------
Thomas N. Amonett Director fees $ 1,500 $ 19,500
Charles E. Bradley Director fees $ 9,833 $127,829
Thomas L. Cassidy Director fees $ 1,500 $ 19,500
David E. Jackson Director fees $ 1,500 $ 19,500
Joseph C. Lawyer Director fees $ 4,625 $ 60,125
John G. Poole Director fees $ 5,000 $ 65,000
Kimball J. Bradley, CEO Salary $32,627 $424,151
John M. Froehlich, CFO Salary $18,255 $237,315
Thomas J. Vogel, VP Salary $ 9,350 $169,200
PROFESSIONALS:
--------------
TOTAL
DATE OF PAID THIS TOTAL INCURRED
COURT AMOUNT PERIOD PAID TO AND
ORDER APPROVED AMOUNT DATE UNPAID
------- -------- --------- ------- --------
Reid and Riege, PC 11/28/07 $ 545,036 $ 168,458 $ 545,036 $75,592
POST PETITION STATUS OF SECURED NOTES,LEASES AND ADEQUATE PROTECTION PAYMENTS:
------------------------------------------------------------------------------
MONTHLY PAID POST
PAYM'TS DURING PETITION
NAME OF CREDITOR DUE MONTH UNPAID
------------------------- --------- --------- ---------
SECURED NOTES:(Principal in default)
ADEQUATE PROTECTION PAYMENTS:
U.S. Bank, as Trustee $ 0 $ 0 $ 0
LEASES
------
KWA Properties $ 70,198 $ 70,198 $ 0
IPC REIT - Stanwix Street Assoc $ 9,362 $ 9,362 $ 0
US Bancorp $ 2,890 $ 2,890 $ 0
- A-12 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 7
DEBTOR QUESTIONNAIRE
DECEMBER 2008
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Must be completed each month. If the answer to any of the questions
is "Yes", provide a detailed explanation of each item.
Attach additional sheets if necessary.
YES NO
--- ---
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE
OF BUSINESS THIS REPORTING PERIOD? X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR
IN POSSESSION ACCOUNT THIS REPORTING PERIOD? X
3. IS THE DEBTOR DELINQUENT IN THE TIMELY FILING OF ANY POST-PETITION
TAX RETURNS? X
4. ARE WORKERS' COMPENSATION, GENERAL LIABLIITY OR OTHER NECESSARY
INSURANCE COVERAGES EXPIRED OR CANCELLED, OR HAS THE DEBOR
RECEIVED NOTICE OF EXPIRATION OR CANCELLATION OF SUCH POLICIES? X
5. IS THE DEBTOR DELINQUENT IN PAYING ANY INSURANCE PREMIUM PAYMENT? X
6. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS
REPORTING PERIOD? X
7. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM
RELATED PARTIES? X
8. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
9. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X
10.ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
11.ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
12.HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X
13.ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? X
14.ARE ANY WAGE PAYMENTS PAST DUE? X
15.HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X
16.IS THE DEBTOR DELINQUENT IN PAYING ANY U.S. TRUSTEE FEES? X
17.IS THE DEBTOR DELINQUENT WITH ANY COURT ORDERED PAYMENTS TO ATTORNEYS
OR OTHER PROFESSIONALS? X
18.HAVE THE OWNERS OF SHAREHOLDERS RECEIVED ANY COMPENSATION OUTSTIDE OF
THE NORMAL COURSE OF BUSINESS? X
- A-13 -